API-120: Advanced Macroeconomics for the Open Economy I

Schedule

Day

Time

Location

First Day

9/3

Meet Day

M/W

2:40 PM -
4:00 PM

L230

Review

F

8:40 AM -
10:00 AM

L230

2nd Rev. Fri, 10:10-11:30, L230

Description

Focuses on the
international dimension of macroeconomic policy, particularly
monetary, fiscal, and exchange rate policy, and on the
determination of the current account balance, national income, and
inflation. Special attention is given to developing countries and
other small open economies, defined as those for whom prices are
determined on world markets. Models of devaluation include those
that focus on the price of internationally traded goods in terms of
non-traded goods. A major overall theme is the implication of
increased integration of global financial markets. Another is
countries' choice of monetary regime, especially the degree of
exchange rate flexibility and alternative ways that central banks
can credibly commit to noninflationary monetary policy.
Implications of commodity price swings and financial crises in
emerging markets will both be covered.

This course
is designed for MPA/ID students and is open to non-MPA/ID students
by permission of instructor only. Proficiency in calculus
essential.